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Yue Sai is L'Oreal's troubled Chinese luxury brand. Alexis Perakis-Valat, the new CEO of L'Oreal China, has made it a point of honor to turn the brand around. He has asked Stephane Wilmet, the brand's new general manager, to come up with a turnaround plan that will restore L'Oreal's reputation in China as the world's best cosmetic marketer. Stephane Wilmet and Ronnie Liang, Yue Sai's marketing director, must reconsider everything from Yue Sai's value proposition down to its media, price, product, and distribution strategies. Please visit the dedicated case website to watch commercials and video interviews. This case has been featured on our website, click to view the article.

Learning objectives:

1. The case shows the challenges that even very successful multinational firms experience when doing business in China. Specific topics discussed include: Functional vs emotional branding. Can all brands become 'passion' brands? Should they?. 2. Specific topics discussed include: Effects of country of origin, national pride, traditions and cultural beliefs in today's China. 3. Specific topics discussed include: Marketing 'masstige' (affordable luxury) brands. How to leverage brand heritage while staying current and relevant in a fast-moving market.

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